Woodside's Q2 production slips

Group reconfirms revised FY guidance as oil production posts minor fall.

Woodside Petroleum Ltd's second-quarter production has fallen slightly, weighed down by planned and unscheduled maintenance works, but the group has lifted its overall first-half production. 

In the three months to June 30, Woodside produced 20 million barrels of oil equivalent (MMboe), a slight 0.6% decrease on the 20.1 MMboe produced in the previous corresponding period.

The group said its production result was impacted by planned North West Shelf and Pluto maintenance coupled with an unplanned Pluto LNG outage.

But Woodside's first-half production increased from the corresponding period in 2012.

In the six months to June 30, Woodside produced 41.618 MMboe, a 23% increase on the 34.175 MMboe produced in the previous corresponding period.

Woodside reconfirmed its revised full-year production guidance.

Earlier this month, Woodside lowered its full-year production target range to between 85 and 89 MMboe, from the previous range 88 to 94 MMboe.

Woodside offered two reasons for the revision.

First was a temporary interruption to Pluto production resulting from an unplanned shutdown of the LNG processing train; and second, was the scheduled refurbishment of the Vincent floating production storage and offloading vessel taking longer than expected (see Woodside's yield-growth challenge by Tim Treadgold).

Revenue in the second quarter came in at $US1.345 billion, a 6% fall on the $US1.431 billion posted in the previous corresponding period.

Woodside said the fall in revenue was due largely to lower oil volumes as a result of the Vincent FPSO being off station for planned shipyard maintenance.

"This resulted in lower average realised prices," Woodside said.

The group noted the average brent price for the quarter was $103.35 per barrel, down from $108.76 per barrel in the corresponding period.

Woodside noted the special 63 US cent dividend it paid to shareholders during the quarter and said it targeting a dividend payout ratio of 80% of underlying net profit after tax, which is expected to be maintained for several years.